Bank Internal Factors and Profit Distribution Management of Syariah Banks in Indonesia

Abstract

The purpose of this study is to analyze the effect of Capital Adequacy Ratio (CAR), Operation Efficiency (BOPO), Financing to Deposit Ratio (FDR), Proportion of Depositor’s Funding (PDPK), Purchase Financing (PJB), Profit Sharing Financing (PBH) and Return On Assets (ROA) to Profit Distribution Management (PDM) in Islamic banks in Indonesia. The sample determined by using purposive sampling based on Indonesia Syariah Bank for period of 2009-2013. The population in this research is 11 Syariah Banks, which 5 Syariah Banks are chosen based on purposive sampling. For analysis the data, multiple regression analysis with IBM SPSS. The result of the research shown that internal bank factors (BOPO and PBH) give positive effect to PDM, the internal bank factors (FDR and PDPK) give negative effect to PDM, while internal bank factors (CAR and PJB) do not affect to PDM. ROA gives positive effect on PDM. Keywords : CAR, BOPO, FDR, PDPK, PJB, PBH, ROA, PDM.

Internal Factor Attribute in Islamic Banks: Which Ones Contribute to Profit Distribution? Evidence From Muamalat Bank

“…Alteza (2017) revealed that if the financing incurred is high while the profit sharing obtained is low, it can make managers' motivation to carry out high-Profit Distribution Management (PDM) impossible to do, considering it will be challenging to deal with the possible risks that will arise. This study's results align with the research conducted by Mismiwati (2018), which shows that the BOPO ratio has no significant effect on Profit Distribution Management (PDM). However, research conducted by Nengsih (2020) shows that BOPO has an effect on Profit Distribution Management.…”

“…The profit-sharing system makes the amount of profit the customer gets adhere to the amount of profit the bank gets. The distribution of customer funds collected can be placed by Islamic banks in business sectors that generate profits (Mismiwati, 2018).…”